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Goldman Sachs BDC, Inc.
Investor Presentation
Quarter Ended March 31, 2015
www.goldmansachsbdc.com
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Disclaimer and Forward-Looking Statement
The information contained in this presentation should be viewed in conjunction with the earnings conference call of Goldman Sachs BDC, Inc. (“GS BDC” or the “Company”) held on May 14, 2015. By acceptance hereof, you agree that the information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of the Company.
This presentation may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy the common stock or any other securities nor will there be any sale of the common stock or any other securities referred to in this presentation in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by GS BDC or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks. GS BDC is managed by Goldman Sachs Asset Management, L.P. (“GSAM”), a wholly owned subsidiary of the Goldman Sachs Group, Inc. (“Group Inc.”). None of GSAM, Group Inc., GS BDC, or any affiliate of GSAM, Group Inc., or GS BDC makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance.
The information contained in this presentation is summary information that is intended to be considered in the context of other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. These materials contain information about GS BDC, certain of its personnel and affiliates and its historical performance. You should not view information related to the past performance of GS BDC as indicative of GS BDC’s future results, the achievement of which cannot be assured. Further, an investment in GS BDC is discrete from, and does not represent an interest in, any other Goldman Sachs entity.
This investor presentation contains certain financial measures that have not been prepared in accordance with generally accepted accounting principles in the Unites States (“GAAP”). Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures has been provided in this investor presentation, and investors are encouraged to review the reconciliation.
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Quarterly Highlights
Quarter Ended March 31, 2015
On March 18, 2015, the Company priced its initial public offering (“IPO”) of 6.0 million shares at $20.00 per share, generating net proceeds of $114.9 million;
Net investment income for the quarter ended March 31, 2015 was $0.52 per share, as compared to $0.34 per share for the quarter ended March 31, 2014;
Earnings per share for the quarter ended March 31, 2015 was $0.46 per share, as compared to $0.13 per share for the quarter ended December 31, 2014;
The Company announced a second quarter dividend of $0.45 per share, as compared to $0.41 per share for the second quarter of 2014;
As of March 31, 2015, investments at fair value(1) in the Senior Credit Fund, LLC (“SCF”), the Company?s strategic joint venture, were $181.0 million, up from $111.2 million as of December 31, 2014, representing a 62.8% quarter-over-quarter increase;
Goldman Sachs, & Co. (“GS”) adopted a $25.0 million 10b5-1 share purchase plan;
The Board of Directors authorized the Company to repurchase up to $35.0 million of its common stock, which will not begin until c apital committed to the 10b5-1 plan has been exhausted.
(1) The discussion of the investment portfolio excludes our investment in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc.
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Selected Financial Highlights
Quarter Ended March 31, 2015
(in $ millions, except per share data) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Investment portfolio, at fair value(1) $500.9 $606.5 $824.4 $913.9 $909.9
Debt — 35.0 237.0 350.0 224.0
Net assets 593.5 589.0 587.0 574.6 687.6
Debt to equity at quarter-end 0.00x 0.06x 0.40x 0.61x 0.33x
Average debt to equity(2) 0.00x 0.02x 0.21x 0.47x 0.56x
Total investment income $13.7 $16.1 $19.1 $24.4 $26.4
Net investment income after taxes 10.4 12.5 12.4 17.4 15.7
Net increase in net assets resulting from operations 9.5 12.4 11.3 3.8 14.0
Per Share Data:
Net asset value per share $19.98 $19.99 $19.95 $19.49 (3) $19.43
Net investment income (loss) per share (basic and diluted) 0.34 0.42 0.42 0.59 0.52
Earnings per share (basic and diluted) 0.31 0.42 0.38 0.13 0.46
Regular distribution per share 0.33 0.41 0.42 0.45 0.45
Special distribution per share(4) ——— 0.08 -
(1) The discussion of the investment portfolio excludes our investment in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc.
(2) Average debt to equity has been calculated using the average daily borrowings during the quarter divided by average net assets, adjusted for equity contributions.
(3) Adjusted net asset val ue per share is a non-GAAP meas ure and is provided in addition to, but not as a s ubstitute for, net asset value per s har e. Adjusted net asset val ue per s har e represents the effect of the i nitial public offering, without
taking into account the under writers? over-allotment opti on. As of Dec ember 31, 2014, adjusted and GAAP net ass et val ue per share was $19.49 and $19.56, r especti vel y. GSBD uses this non-GAAP financi al meas ure in anal yzing the
respecti ve quarter-over-quarter financi al res ults and believes that the us e of this non-GAAP fi nancial measur e is us eful to i nvestors as an additi onal tool to eval uate the quarter-over-quarter effect of the i nitial public offering that occ urred
during the first quarter of 2015.
(4) Includes distributions resulting from capital gains.
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Originations and Net Funded Investment Activity
Quarter Ended March 31, 2015
Originations and Net Funded Investment Activity
New investment fundings totaled $8.6 million in three existing portfolio companies, including $3.2 million in the SCF
The SCF made new investment fundings of $69.4 million, including seven new investments in six new portfolio companies
(in $ millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Investments in Goldman Sachs BDC, Inc.
New Investment Commitments $53.3 $ 178.8 $234.5 $257.0 $3.2
New Investment Fundings 53.3 159.2 234.5 241.8 8.6
Repayments and Exits (45.6) (54.1) (24.7) (139.4) (12.1)
Net Funded Investment Activity $7.7 $ 105.1 $209.8 $102.4 $(3.5)
Investments in SCF(1)
New Investment Commitments $112.4 $69.4
New Investment Fundings 112.4 $69.4
Repayments and Exits (0.6) (0.9)
Net Funded Investment Activity $111.8 $68.5
(1) The SCF is an unconsolidated Delaware limited liability company. Investments in the SCF are capitalized with pro rata capital contributions by us and our joint venture partner and borrowings under the SCF?s credit facilities.
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Portfolio Asset Composition
Quarter Ended March 31, 2015
New Investment Commitments (at cost, $mm) End of Period Investments (at fair value, $mm)
$914 <1% $910 <1%
$257 3% 3%
$235 10% $824 <1% 4% 3% 3%
12%
38% 38%
$179 34% $606 <1% 44%
$501 5%
24% <1%
6%
52% 44%
31%
48% 18% 30% 30%
13%
$53 76%
9% 15%
6% 35% 34%
26% 38% 26% 26%
85% $3 31%
100%
Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15
03/31/14 06/30/14 09/30/14 12/31/14 03/31/15 03/31/14 06/30/14 09/30/14 12/31/14 03/31/15
Investment Funds & Vehicles (1) Common Equity Investment Funds & Vehicles (1) Common Equity
Preferred Stock Unsecured Debt Preferred Stock Unsecured Debt
2nd Lien 1st Lien, Last-out Unitranche 2nd Lien 1st Lien, Last-out Unitranche
1st Lien 1st Lien
(1) Investment Funds & Vehicles represents the investment in the SCF.
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Credit Quality of Investments
Quarter Ended March 31, 2015
Non-Accrual
No investments were on non-accrual status as of March 31, 2015
Internal Investment Risk Rating
(in $ millions) Q4 2014 Q1 2015
% of Total Portfolio at % of Total Portfolio at
Rating Fair Value Fair Value
Fair Value Fair Value
1 $11.4 1.2% $- -%
2 843.4 92.3% 846.0 93.0%
3 59.1 6.5% 63.9 7.0%
4 — -% — -%
Total $913.9 100.0% $909.9 100.0%
Internal Investment Risk Rating Definition
Rating Definition
Involves the least amount of risk
1 Borrow er is performing above expectations and the trends and risk factors are favorable
Involves an acceptable level of risk that is similar to the risk at the time of origination
2 Borrow er is generally performing as expected and the risk factors are neutral to favorable
Involves a borrow er performing below expectations and indicates that the investment?s risk has increased materially since origination/acquisition
3 Borrow er may be out of compliance w ith debt covenants; however, payments are generally not past 120 days due
? Involves a borrow er performing materially below expectations and indicates that the investment?s risk has increased substantially since origination
4 Most or all of the debt covenants are out of compliance and payments are substantially delinquent; investments are not anticipated to be repaid in full and w e
may realize a substantial loss of our initial cost basis upon exit
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Portfolio Summary – Goldman Sachs BDC, Inc.
Quarter Ended March 31, 2015
Portfolio Characteristics (as of March 31, 2015)
Invested Portfolio
Total investment commitments ($mm) $945.8
Unfunded commitments ($mm) $35.9
Investments at fair value ($mm) 909.9
Yield at fair value of investments (%) 11.3%
Yield at cost of investments (%) 11.0%
Investments on non-accrual (%) -%
Portfolio Companies Total Investments(1)
Number of portfolio companies 33
Weighted average leverage (net debt/EBITDA) 4.2x
Weighted average interest coverage 3.0x
Median EBITDA ($mm) $39.8
Seniority(2) Fixed/Floating(2)(3) Industry Diversification(2)
Common Equity/
Stock, Investment Industry % of Portfolio
< 0.1% Funds & Other, 0.6%
Preferred Vehicles, 3.1% Diversified Telecommunication 9.9%
Stock, Fixed, Services
2.8% 14.5% Real Estate Management &
1st Lien, 8.2%
25.9% Development
2nd Lien, Professional Services 7.5%
37.9%
1st Lien, Last- Floating, Electronic Equipment, 7.4%
Out 84.9% Instruments & Components
Unitranche,
30.3% Internet Software & Services 6.5%
Other (?6.0% each) 60.5%
(1) For a particular portfolio c ompany, EBITDA typicall y repres ents net inc ome before net interest expens e, i ncome tax expens e, depreciati on and amortizati on. T he weighted average net debt to EBITDA of our portfolio compani es represents
our last doll ar of invested debt capital ( net of c ash) as a multi ple of EBITDA of our portfolio c ompanies. T he weighted average interest coverage rati o (EBITDA to total i nteres t expense) of our portfolio c ompanies r eflects our portfolio
companies’ EBITDA as a multi ple of interest expens e. Portfolio company statistics have been calculated as a percentage of debt investments and i ncome pr oducing preferred investments, incl udi ng the underlyi ng debt investments in the
SCF. Portfolio company statistics ar e deri ved from the most rec entl y availabl e fi nancial statements of each portfoli o c ompany as of the reported quarter end date. Portfolio company statistics have not been independently verified by us and
may reflect a normalized or adjusted amount.
(2) Measured on a fair value basis.
(3) The fixed versus floating percentages have been calculated as a percentage of total investments. The investment in the SCF is included in „floating? as this was comprised of 100% of floating rate investments as of March 31, 2015. Equity
and other includes non-income producing investments.
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Portfolio Summary – Senior Credit Fund, LLC
Quarter Ended March 31, 2015
Portfolio Characteristics (as of March 31, 2015)
Invested Portfolio
Investments at fair value ($mm) 181.0
Yield at fair value of investments (%) 6.9%
Yield at cost of investments (%) 6.9%
Investments on non-accrual (%) -%
Portfolio Companies Total Investments(1)
Number of portfolio companies 14
Weighted average leverage (net debt/EBITDA) 3.0x
Weighted average interest coverage 3.9x
Median EBITDA ($mm) $64.5
Seniority(2) Fixed/Floating(2) Industry Diversification(2)
2nd Lien
Secured, 3.3% Industry % of Portfolio
Capital Markets 19.1%
Auto Components 13.4%
IT Services 13.2%
Floating, Professional Services 11.0%
1st Lien 100%
Secured, 96.7% Food Products 8.1%
Automobiles 8.1%
Other (?7% each) 27.1%
(1) For a particul ar portfolio company, EBITDA typicall y represents net income before net i nter est expens e, inc ome tax expens e, depreciati on and amortizati on. The weighted average net debt to EBITDA of our portfolio c ompanies r epres ents
our last doll ar of invested debt capital ( net of c ash) as a multi ple of EBITDA of our portfolio c ompanies. T he weighted average interest coverage rati o (EBITDA to total i nteres t expense) of our portfolio c ompanies r eflects our portfolio
companies’ EBITDA as a multi ple of interest expens e. Portfolio company statistics have been calculated as a percentage of debt investments and i ncome pr oducing preferred investments, incl udi ng the underlyi ng debt investments in the
SCF. Portfolio company statistics ar e deri ved from the most rec entl y availabl e fi nancial statements of each portfoli o c ompany as of the reported quarter end date. Portfolio company statistics have not been independently verified by us and
may reflect a normalized or adjusted amount.
(2) Measured on a fair value basis.
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Quarterly Operating Results
Quarter Ended March 31, 2015
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Investment income
Interest income(1) $13,175 $14,943 $18,418 $22,918 $25,078
Dividend income 546 1,117 609 921 1,165
Other income 17 46 49 520 129
Total investment income $13,738 $16,106 $19,076 $24,359 $26,372
Expenses
Interest and credit facility expense $571 $634 $1,355 $2,123 $2,486
Management fees 1,896 2,110 2,738 3,325 3,472
Incentive fees —— 1,495 — 3,508
Other operating expenses 869 837 1,072 1,397 1,135
Total expenses before taxes $3,336 $3,581 $6,660 $6,845 $10,601
Excise tax expense ——— 119 25
Net investment income after taxes $10,402 $12,525 $12,416 $17,395 $15,746
Net realized and unrealized gain (losses) on investment transactions
Net realized gain (loss) on investments $(2,192) — $739 $262 -
Net change in unrealized appreciation (depreciation) on investments 1,252 (96) (1,900) (13,881) (1,713)
Net realized and unrealized gains (losses) $(940) $(96) $(1,161) $(13,619) $(1,713)
Net increase in net assets resulting from operations $9,462 $12,429 $11,255 $3,776 $14,033
Per share data
Net investment income $0.34 $0.42 $0.42 $0.59 $0.52
Earnings per share $0.31 $0.42 $0.38 $0.13 $0.46
Regular distribution per share $0.33 $0.41 $0.42 $0.45 $0.45
Special distribution per share(2) ——— $0.08 -
Weighted average shares outstanding 30,382,473 29,699,727 29,461,726 29,418,149 30,314,460
Shares outstanding, end of period 29,702,366 29,462,200 29,418,555 29,381,127 35,381,127
All figures in thousands ($000), except per share data.
(1) Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income.
(2) Includes distributions resulting from capital gains.
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Quarterly Balance Sheet
Quarter Ended March 31, 2015
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Assets
Investments at fair value $500,848 $606,454 $824,432 $913,947 $909,906
Investments in affiliated money market fund 84,020 18,500 38,568 29,568 5,569
Cash 29,499 10,076 7,520 8,609 8,989
Receivable from investments sold —— 7,604 — -
Interest and dividends receivable 3,377 4,610 7,560 9,010 9,731
Deferred financing and offering costs 4,332 4,125 3,906 6,358 5,198
Receivable from Investment Advisor 802 790 791 — -
Other assets — 112 57 — 66
Total Assets $622,878 $644,667 $890,438 $967,492 $939,459
Liabilities & Net Assets
Debt $- $35,000 $237,000 $350,000 $224,000
Interest and credit facility expense payable 410 78 353 527 314
Management fees payable 2,531 2,110 2,738 3,326 3,472
Incentive fees payable —— 1,495 — 3,508
Payable for investments purchased 1,471 450 46,792 19,700 -
Common stock repurchased 13,741 4,801 871 732 -
Distribution payable 9,998 12,101 12,374 15,506 15,922
Other costs and liabilities 1,220 1,092 1,771 3,119 4,684
Total Liabilities $29,371 $55,632 $303,394 $392,910 $251,900
Total Net Assets $593,507 $589,035 $587,044 $574,582 $687,559
Total Liabilities and Net Assets $622,878 $644,667 $890,438 $967,492 $939,459
Net Asset Value per share $19.98 $19.99 $19.95 $19.56 $19.43
All figures in thousands ($000), except per share data.
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Net Asset Value Bridge
Quarter Ended March 31, 2015
19.56 19.49 19.43
0.14 0.07
(0.28) (0.06)
12/31/14 Ending Total offering costs(1) Offering costs paid Accretion from Adjusted 12/31/14 1Q’15 NII, 3/31/15 Ending
Book NAV by Investment offering Book NAV (3) Distribution & Net Book NAV
Adviser (GSAM)(2) Change in
Unrealized
Appreciation
(Depreciation)
Per share data above is based on March 31, 2015 ending shares outstanding.
(1) Includes sales load and offering costs.
(2) Goldman Sachs Asset Management, L.P. (GSAM) paid 70% of the sales load.
(3) Adjusted net asset value per s hare is a non-GAAP measure and is provi ded in addition to, but not as a substitute for, net ass et value per share. Adj usted net asset val ue per share represents the effect of the initi al public offering, without
taking into account the under writers? over-allotment option. As of December 31, 2014, adjusted and GAAP net asset value per share was $19.49 and $19.56, respecti vel y. GSBD us es this non-GAAP financi al meas ure in anal yzing the
respecti ve quarter-over-quarter financi al res ults and believes that the us e of this non-GAAP financi al measure is useful to investors as an additional tool to evaluate the quarter-over-quarter effec t of the i nitial public offering that occ urred
during the first quarter of 2015.
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Liquidity Management
Quarter Ended March 31, 2015
Goldman Sachs BDC, Inc. Senior Credit Fund, LLC
Revolving Credit Facility Subscription Facility Warehouse Facility
Size ($mm) $560 $50 $200
Interest Rate LIBOR + 225 bps CP + 175 bps CP + 240 bps
Maturity 10/3/2019 10/3/2015 12/15/2022
$600 560
$500
$400 336
$300
200
$200
$100 224 50 130
$0 50 70
Revolving Credit Facility Subscription Facility Warehouse Facility
Undrawn Drawn
All figures in millions.
LIBOR: London Interbank Offered Rate. Commercial Paper Rate (“CP Rate”).
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Distribution and Common Stock Information
Quarter Ended March 31, 2015
Distribution Data
Date Declared Record Date Payment Date Amount
Per Share
February 25, 2015 March 31, 2015 April 30, 2015 $ 0.45
December 30, 2014 December 23, 2014 January 30, 2015 $ 0.53(1)
September 29, 2014 September 24, 2014 October 31, 2014 $ 0.42
June 27, 2014 June 17, 2014 July 31, 2014 $ 0.41
March 28, 2014 March 17, 2014 April 30, 2014 $ 0.33
December 10, 2013 December 10, 2013 January 30, 2014 $ 0.23(1)
October 17, 2013 September 27, 2013 October 21, 2013 $ 0.19
July 17, 2013 June 28, 2013 July 22, 2013 $ 0.08
Common Stock Data
Quarter Ended High Low End of Period
March 31, 2015(2) $21.31 $20.05 $ 20.66
(1) Distributions declared includes net investment income and net realized gains. In Q4 2014 and Q4 2013, the Company declared a net realized gain distribution of $0.08 per share and $0.01, respectively.
(2) First quarter 2015 was a partial quarter, beginning March 18, 2015, when the Company commenced trading on the New York Stock Exchange.
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